The Government of Uganda is shaking the foundations of Tanzania with enticing incentives to the traders. The Parliament of Uganda is increasing its competitive level in the East African region and is already gaining grounds after convincing import traders to import Chinese goods via the country. Dar es Salaam port is on the verge of missing out on many businesses should President Magufuli fail to make the necessary adjustments to maintain stability in the business environment.

Already some Tanzania traders have shifted their focus to Uganda than importing their commodities via Dar Port. Several importers have lamented of the tax conundrum affecting their businesses and threatening the business environment of the country. They have argued that it is cheaper to import goods via their neighbouring state than the maritime commercial facility available at their disposal.

In a bid to lure more foreign investments, increase its business competitiveness and build a stable economic empire, Uganda under the governance of Head of State Yoweri Museveni has identified changes to be made to achieve the country’s objectives. The business environment needs to be more accommodative to make the ease of doing business in the nation favourable.

High taxes have discouraged business leaders from venturing into bigger markets. Many charges on the port have made traders opt for alternatives to ship their consignments at minimal cost. The hefty taxes imposed on imported goods end up sky-rocketing their prices in the market. The ripple effect turns off the consumer purchasing power leading to a surplus with no demand. The repercussion is devastating to any business, and the Government misses out on the revenue.

Despite introducing taxes on social media, the Uganda Government has continued to make custom adjustments to suit the dynamism in business. On the other hand, Tanzania stiff faces a barrier to business growth due to the tax burden. The Tanzania importers have questioned the level of transparency in the entire saga of multiple charges involved and have asked the relevant authorities to intervene.

Other challenges have shed light on the stunted-growth of business in the Dar port. The facility handles over 90 per cent of country’s cargo traffic but has failed to eradicate some stumbling blocks to achieve the most potential in its operations. The decline of the consignment is a sign that business is slowly going down which has gotten the attention of the traders.

Recently this year, the development and expansion of Dar port, as well as the Djibouti port, posed a massive threat to Kenya’s Mombasa port, with a probability of blocking the facility off regional business and trade. Now Dar port could be losing its trade mojo with the hurdles yet to be removed. The port is a vital facility in the East African region and should in no time be making the changes to affect business.

Source Exchange

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